I apologise if this question has been asked before, but I couldn't find it in a search on Any Answers, and given some changes from Entrepreneurs to Business Asset Disposal Relief, I wanted to ask for some opinions, guidance or things to look out for.
My client has a Guest House, which he is selling.
We have calculated a proportion of the property that has been solely private use and is his only property/main home.
My question here is on reliefs, because I have never done the sale of a Guest House.
The property is being sold as a Guest House. He has occupied the main home section of the property for his whole period of ownership and he has owned it for about 8 years.
- For Capital Gains rate: Will the gain be considered under the Residential Property rate? 18/28% or under the 'Other/Business Property' 10%/20%
- Could he claim Business Asset Disposal Relief, thereby paying the 10% rate?
I would be very grateful for some guidance on this and any other things I should be looking at.
Thank you in advance for your time and help.